Union Bank of India Education Loan

Interest Rate
Starting from 9.25%
Processing Fee
Unsecured Loan
Up to 40 lacs
Moratorium Period
Course Period + 1 year
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Loan Products by Union Bank of India

Special Union Education Loan Scheme (Abroad)
  • Up to 40 lacs without collateral (unsecured loan)
  • Up to 1.5 cr. with collateral (secured loan)
  • 100% of total expenses covered
  • Moratorium period of course period + 1 year
  • Repayment tenure up to 15 years (after moratorium period)
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Union Bank Education Loan for India
  • Up to 4 lacs without collateral (unsecured loan)
  • Above 7.5 lacs with collateral (secured loan)
  • 100% of total expenses covered
  • Maximum repayment tenure up to 15 years
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Union Bank of India Abroad Education Loan Details


Union Bank of India offers a variety of education loan options to help finance your studies in India or abroad. Here's a quick breakdown:

  • Loan amount: Varies depending on the scheme, but can go up to Rs. 40 lakhs without collateral for merit-based admissions.
  • Interest rates: Competitive rates starting from 9.25% p.a. (subject to change).
  • Collateral: Not required for loans up to Rs. 40 lakhs for certain programs. Higher loan amounts may require collateral security.
  • Repayment: Flexible repayment options with a moratorium period during your studies.
  • Special schemes: Union Bank offers special schemes like the Union Education Premier Loan for studies abroad and the Union Education Skill Development Loan for vocational courses.


  • Competitive interest rates
  • Collateral-free loans for eligible students
  • Flexible repayment options
  • Finance for various educational expenses


The student should be an Indian National and Secured admission in full time Post Graduate Courses in the Premium University Abroad through entrance examinations conducted by recognized universities / institutions and other approved authorities.

Expenses Covered
  • Tuition fee payable to college / school / university
  • Hostel/mess charges
  • Examination / Library / Laboratory fee
  • Insurance premium for the student borrower
  • Caution deposit, building fund / refundable deposit supported by Institution bills / receipts
  • Travel expenses / passage money for studies abroad
  • Purchase of books / equipment's / instruments / uniforms
  • Purchase of computer / laptop at reasonable cost, if required for completion of the course
  • Any other expense required to complete the course - like study tours, project work, thesis, etc.

Quantum of Loan
  • Minimum: Rs.7.5 Lakhs
  • Maximum: Rs.1.5 Cr.

Quantum of Loan Margin
Up to Rs. 4 lakhs (for India) Nil
Above Rs. 4 laks (for India) 5%
Upto Rs. 40 laks (for Abroad) 15%
Above Rs. 40 lakhs up to Rs. 1.5 Cr. (for Abroad) with 100% collateral Nil
with minimum 50% collateral 15%

Mess charges / Living expenses

In cases where the mess charges/living expenses are not mentioned/indicated in the fee structure provided by the institute, a reasonable amount is to be considered based on the living expenses of the country. The mess charges/living expenses will be allowed within the overall sanctioned limit.

Interest Rate
Quantum of Loan Collateral Coverage Rate of Interest
Up to Rs. 40 lakhs without collateral EBLR + 0.50%
Up tp Rs. 1.5 Crores 50% and < 100% collateral EBLR + 0.25%
100% collateral EBLR

Note: EBLR stands for External Benchmarks Lending Rate

Processing Fee

No processing charges to be levied.

However, an upfront fee of Rs.5000 to be charged to the student, which will be refunded if the student avails the loan within a period of 3 months from the date of sanction.

If the student does not avail the loan within a period of 3 months from the date of sanction, then the deposit of Rs.5000 to be appropriated as processing charges.

A suitable stipulation to this effect should be included in the sanction letter issued to the student.

Repayment period & Moratorium
  • 180 months / 15 years (After moratorium period)
  • Course period + 1 year

Co-applicant / Guarantor

Either of the parents or spouse to be made co-applicant / guarantor.

Income/means of the co-applicant / guarantor is not to be considered while sanctioning the loan.

All the formalities with regard to the co-applicant / guarantor will have to be completed before release of the loan.

RLP / Branch nearest to the place of residence of co-applicant / guarantor to complete all the required loan formalities.

Minimum CIBIL score or equivalent CIC score of the co-borrower/guarantor shall be 650 & above.

Note: SB account of parent is mandatory.


Term life insurance policy to be obtained & assigned in favour of the bank.

The policy should be in the name of student, for an amount not less than the loan amount and for the tenure covering course, moratorium and repayment period.

The premium of insurance can be included in the loan amount, if requested by the student.

Branch should explore the possibility of insuring the borrowers under SUD Life's New Sampoorna Loan Suraksha Insurance Policy. However, student may have option to approach any insurance company for lesser premium or Branch to arrange for the same.

List of Premier Institutes / Universities & Courses Country Wise:

You can find the complete list of Premiere Abroad Universities here

Frequently Asked Question's

You might be eligible if you are:
  • An Indian citizen.
  • Have a confirmed admission offer from a recognized university abroad.
  • Meet the bank's minimum academic qualifications (refer to bank website or branch for details).
  • Have a co-applicant (parent/guardian) with a good credit history and stable income (exceptions might exist for exceptional academic profiles).

Documents typically required include:
  • Completed application form.
  • Admission letter and fee structure from the university.
  • Academic transcripts.
  • KYC documents (proof of identity and address).
  • Co-applicant's income proof and bank statements.
  • Other documents as requested by the bank (e.g., scholarship letters, course details).

Interest rates for Union Bank's Abroad Education Loan are based on the External Benchmark Lending Rate (EBLR) and can vary depending on your profile and loan amount.

Union Bank offers flexible repayment options with a maximum tenure that can go up to 15 years. You might also be eligible for a moratorium on repayment of principal during the study period for specific courses. It's advisable to confirm details with the bank during the application process.

Yes, Union Bank may offer loans to cover living expenses in addition to tuition fees, subject to a pre-defined limit and your overall loan eligibility.

The bank claims a processing time of 7 working days after submission of complete documents. However, the actual timeframe can vary depending on verification procedures and loan amount.

Yes, you can claim tax benefits on the interest paid on the Union Bank of India Abroad Education Loan under Section 80E of the Income Tax Act, 1961

Union Bank offers competitive interest rates (especially if you qualify for a lower interest tier) and potentially faster processing compared to some public sector banks. However, it's important to compare interest rates, fees, and overall loan terms with other lenders before making a decision.